Alkem Laboratories hits record high post-Q2 nos; here's what brokerages suggest

Alkem Laboratories share price BSE, Alkem Laboratories share price target, Alkem Laboratories Q2 results: Alkem Laboratories shares on Wednesday, November 8, rallied six per cent to clock a record peak of Rs 4,271.95 apiece on BSE after the Mumbai-based pharmaceutical company wooed the D-Street with its financial earnings report for Q2 on the back of lower raw material costs and a lower intensity of price erosion in the US market. At the time of filing this report, the counter traded at Rs 4,218, up by Rs 190.65, or 4.73 per cent, continuing the winning streak for the third day.

Alkem Laboratories reported a 76.83 per cent rise in consolidated net profit at Rs 614.89 crore for the second quarter ended September 30. The company posted a consolidated net profit of Rs 347.72 crore in the second quarter of the last fiscal year. Consolidated revenue from operations stood at Rs 3,440.17 crore, as compared to Rs 3,079.37 crore logged in the year-ago period, it added.

"Continuing our trend of improved performance, Q2 builds on the momentum gained in Q1 with significant gross margin enhancements backed by lower raw material costs, a lower intensity of price erosion in the US market, and increased operating leverage, resulting in improved EBITDA margins," Alkem Laboratories Managing Director Sandeep Singh said. Read more

Alkem Laboratories share price target: Here's what brokerages say after Q2 results

Macquarie has maintained an underperform rating on Alkem Laboratories with a target of Rs 3,175. R&D expenses are expected to increase in the coming quarters, and Q4 profitability is expected to remain weak due to adverse seasonality, the global brokerage said in its report.

In addition, Jefferies has maintained an underperform rating on the counter. The brokerage has raised the target to Rs 3,600 from Rs 3,550. Q2 is an aberration, and there is unexciting guidance for H2FY24, the brokerage said in its note. Sales forecast missed for India, but there was a strong beat in exports, it added.

(This story will be updated shortly.)

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